Question

Which transcript shows if a tax lien has been filed

A. Account Transcript

B. Wage and Income

C. Verification of Nonfiling Transcript

D. Tax Return Transcript

Answer 1

The correct option here is A

Account transcript shows if a tax lien has been filed.

Account Transcript

An account transcript is an annual record of a taxpayer’s account with the IRS. These documents are available from the 1980’s through the current year. Account transcripts are a good way to check for:

• Detailed taxpayer information (SSN, address, etc.)
• Compliance (no missing returns)
• Amended returns
• Substitute for returns
• Type of return filed
• Filing Status
• Extensions
• Refunds
• Bankruptcy or CDP
• Previous or in-progress OIC’s
• Active and resolved collection issues
• Tax liens filed
• And more!

Account transcripts are arranged annually and are updated weekly.

Wage and Income Transcript

A wage and income transcript shows a taxpayer’s detailed income as reported to the IRS. A wage and income transcript is where all of a taxpayer’s information concerning W-2s, 1099s, 1098s, K-1s, and 5498s is shown and can be helpful for verifying employment or filing an extended tax return.

Tax Return Transcript

A tax return transcript shows most line items from a taxpayer’s tax returns as they were originally filed. This transcript won’t reflect any changes made after the return was originally filed, whether by the taxpayer, a tax professional, or the IRS.

A tax return transcript is usually needed by institutions that offer mortgages and student loans. You can request a tax return transcript for the current tax year and the prior three years, but information usually takes 3-6 weeks to post after acceptance of a return.

Verification of Non-filing Transcript

Provides proof that the IRS has no record of a filed Form 1040-series tax return for the year you requested. It doesn't indicate whether you were required to file a return for that year.